Malaysia: 83,233% profit for a 300ml glass of water?

Published on Wed, 2012-02-15 07:36

Photo: gromgull/Flickr/CC

Penang-based Consumers Association of Penang has urged the Domestic Trade, Co-operatives and Consumerism ministry to immediately enforce the Price Control and Anti-Profiteering Act 2010 on eateries charging excessively for plain water.

“The Ministry should not wait for consumers to report being overcharged but use its powers under the Act to take action against the unscrupulous parties,” said its president S.M Mohamed Idris in a statement to Harakahdaily.

Idris was commenting on media reports about excessive charge for a glass of plain water at restaurants and coffee shops in the Klang Valley, with some charging as high as RM1.50 (USD 0,37) when water rate in Selangor and Kuala Lumpur is only RM2.00 (USD 0,5) for every 1,000 litres of water.

Based on this, Idris said the cost for 300ml of water, which consumers are paying at RM0.50 (USD 0,12) per glass, would only be RM0.0006.

“This means that restaurateurs and shops stand to earn a profit of 83,233% for each glass of water sold. This is really daylight robbery!”

He also rubbished the claim that escalating overhead costs contributed to the high price, and pointed out that some restaurants would serve plain water and charge customers even without ordering for it.

“In most cases, the water is not consumed as the customer orders other beverages and hence the water is thrown away. In such instances, water should only be served if the customer requests for it,” he added.

Restaurateurs say that the price of water has escalated as they have to take into account overhead costs. However, CAP feels that it is not an excuse as even if overhead expenses are taken into account, the price is still extremely high.

On the other hand, it also a common practice in some restaurants and shops for water to be served as soon as their customers are seated. In most cases, the water is not consumed as the customer orders other beverages and hence the water is thrown away. In such instances, water should only be served if the customer requests for it.